Chris Amani, the CEO of Terraform Labs, has announced the company’s decision to shut down operations following a $4.47 billion settlement with the United States Securities and Exchange Commission (SEC).
As part of the shutdown, Terraform Labs plans to sell off key projects within the Terra ecosystem and transfer control of the Terra (LUNA) blockchain to the community.
Source:
Chris Amani
In a move that comes after a $4.47 billion settlement with the SEC related to the collapse of the algorithmic stablecoin UST in 2022, Terraform Labs has decided to dissolve the company.
The settlement includes a substantial $3.58 billion disgorgement and a civil penalty of $420 million. Chris Amani, who took over the CEO position from Do Kwon in July 2023, confirmed the decision to wind down operations and burn both unvested and vested holdings.
Source:
Chris Amani
Chris Amani also revealed plans for a community proposal to burn remaining vested tokens and emphasized the importance of community-led governance for the Terra and Terra Classic (LUNC) blockchains.
The decision to hand over control to the community has elicited mixed reactions, with some expressing optimism for the future and others critiquing past leadership decisions. While most support the shift towards community governance of LUNC, one community member’s response to Amani’s announcement post criticized the decision.
Source:
RedlineDrifter
Following Terraform Labs’ announcement of its dissolution, the prices of LUNA and LUNC have dropped by 5% and 2% in the last 24 hours.
The $4.47 billion SEC settlement sets a significant regulatory precedent for the crypto industry, emphasizing the importance of regulatory compliance and governance in the space.
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